Why do people not achieve financial success?

Reason One: Lack of knowledge: or more specifically, a lack of desire to gain knowledge. Make effort to read about financial matters and you will learn. Many people don't know where to go for unbiased advice so they do nothing.

Reason Two: Failure to set plans. Did you know that only 5 percent of population sets goals and only 2 percent has any form of written goals? Their actions have a sense of purpose: they are results oriented, they are motivated, they are positive. They are life's winners. Without a plan, it is easy to drift aimlessly, and live from day to day. If you set goals, you will know what you want to achieve.

Reason Three: Inefficient use of time and poor work habits. Time is like money - you can spend it or invest it in building a better you by self-development. When you waste time, you are wasting yourself. Plan your day - what do you really want to achieve today?

Reason Four: Lack of foresight. Achievers can look beyond immediate and into future. Although some may see your visions as dreams, do not forget that you have to have a dream to make a dream come true. Unless you are fortunate enough to be left a legacy, only money you will ever have working for you is what you save and invest. People with vision can multiply their income by investing in growth investments. Work for your money, then make your money work for you.

Reason Five: The need to conform. Dare to be different! Don't be afraid to take calculated risks. The people who make big money are ones who do opposite of what everyone else does - sell when everyone else buys, and vice versa.

Yet, moving through this stage breathes life into your business - giving it forward momentum like a roller coaster barreling down first big hill. Finding money is just a matter of being informed and choosing right path for money to enter business.

There are several options available to you when searching for financing. Some methods of raising funds are less difficult than others, but all require some planning. Basic planning requires that you know answer to these three questions:

1. What will you use money for?

You must know exactly where money will be used. You must be specific, as generalities are recipes for disaster. Carefully identify areas where money should flow into your business.

2. How much money do you need?

You should calculate your needs to carry you through initial startup and into your first several months of operation. It's necessary to have a realistic picture of your needs. Many businesses fail because money runs out before business reaches profitability.

3. How will you pay back money?

You must have adequate cash flow from your business to repay money to your source. Before asking for funds, make sure your fiscal projections and business integrity are soundly argued in a good business plan.

An integral part of a good business plan are financial statements for your business. You need to show sufficient cash flow in your business for repayment. You do this with information as found in an income statement, a balance sheet, and a projected cash flow statement.

SOURCES OF MONEY

Here are some options for funding your small business:

==> Credit Cards

One form of personal debt you should avoid is cash advances on your credit card. It's very tempting and very easy to get cash this way. If you do this you should pray. Pray with vigor. Then ask for forgiveness. This option is very expensive and extremely risky. Credit cards should only be used for short-term expenses, and not as a means to entirely fund a start-up business.

==> Friends and Family

Borrowing from your friends and family, especially rich ones, is a good way for new businesses to get money. It's not uncommon for relatives to make low interest or no interest loans to family members. Just make sure all parties are aware of any risks. You don't want to alienate your family if business falls on hard times and you have trouble repaying loan.

==> Personal Savings

You can use your personal savings or assets that can be converted to cash. If your savings are already low, put off that vacation, drive your old car a bit longer, avoid large purchases -- be thrifty in all areas and you can save faster for your business. Keep in mind that most lenders won't finance 100 percent of your business, so you'll need to invest some money yourself.

==> Line of Credit

If you have good credit, you may be able secure a line of credit from your bank. This can be handy in providing you with a source of working capital in opening round of your business.

==> Bank Loan

Using collateral, such as equity in your home, you can approach your bank for a loan against your business. This may or may not be an option for you, since some banks prefer to separate personal equity from business debt.

==> Venture Capital